When an Error or Exception Is Identified During Substantive Testing

question 27

Multiple Choice

When an error or exception is identified during substantive testing, the first response is to:

• A) qualify the audit report.
• B) understand why the error or exception has arisen.
• C) increase the sample size.
• D) report the error or exception to the audit committee.

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Definitions:

Inflammatory Process

The biological response of body tissues to harmful stimuli, such as pathogens, damaged cells, or irritants, characterized by redness, swelling, heat, and pain.

Laceration

A deep cut or tear in the skin or flesh, often caused by accidents involving sharp objects or machinery.

Cellular Inflammation

A biological response at the cellular level that involves the activation of the immune system in response to injury or infection, leading to redness, swelling, heat, and possibly pain.

Unresolved Anger

Feelings of anger or resentment that have not been adequately addressed or expressed, often leading to emotional distress or interpersonal conflicts.